PSR speech on tackling APP scams

The Managing Director of the PSR, Chris Hemsley, has set out his views on tackling authorised push payment (APP) fraud. Points of interest in this speech for payments firms include:

• A call for a whole ecosystem approach to tackling APP fraud by breaking down the fraud journey and identifying areas where progress can be made. One of these areas is ensuring that payments firms manage fraud risks appropriately and proportionately including by introducing extra friction in payments in certain circumstances. 
• An emphasis on the role of collaboration in tackling APP scams. Effective collaboration is most likely to be achieved where there is awareness and incentives to act. In relation to the former, from March 2023 the PSR will require 14 of the UK’s largest payment firms to provide six-monthly data on APP scam performance. In relation to the latter, the PSR will use this data to publish a balanced scorecard of APP scam performance. This will, for the first time, provide a picture of how well firms are handling APP scams – both in terms of prevention and in looking after victims. 
• The need for regulators to work together. The speech touches on the PSR's work alongside the FCA and the FCA's steps to combat misleading promotions on social media firms.

The key takeaway for payments firms is that the PSR expects them to raise their game to tackle APP fraud and is proposing to shine a light on those who do not.